In early trading on the 23rd, Samsung Life Insurance jumped more than 11%. The rise is seen as driven by the highlighted value of its equity holdings following the gain in Samsung Electronics' share price and by brokerages raising their target prices, which lifted investor sentiment.
As of 9:19 a.m. that day on the Korea Exchange, Samsung Life Insurance was trading at 230,000 won, up 11,000 won (5.02%) from the previous session. It spiked intraday to as high as 270,500 won, marking a 1-year high.
That day, the securities industry collectively raised their target prices for Samsung Life Insurance. ▲Shinhan Investment 330,000 won ▲Kiwoom Securities 300,000 won ▲NH Investment & Securities 263,000 won ▲LS Securities 240,000 won ▲Samsung Securities 253,000 won.
Im Hee-yeon, a research fellow at Shinhan Investment, said, "For Samsung Life Insurance, the key variable determining the share price is Samsung Electronics' share price rather than the fundamental strength of its core insurance business," adding, "Applying a 50% discount to the roughly 95 trillion won value of its equity holdings and adding 23 trillion won for the core business value puts the appropriate market capitalization at about 70.5 trillion won."
In particular, stronger shareholder return policies at Samsung Electronics are seen as enhancing the investment appeal of Samsung Life Insurance. If Samsung Electronics retires treasury shares, Samsung Life Insurance could see gains expand from disposing of its equity holdings, and dividend increases driven by improved free cash flow (FCF) are also viewed as positive for Samsung Life Insurance's profitability.
Im said, "If a special dividend of more than 1 trillion won compared with the current level is reflected in Samsung Life Insurance's results in the first quarter of 2027, it is highly likely to be used for installment-type dividends or as funding to acquire equity in Samsung Fire & Marine Insurance." Accordingly, Shinhan Investment changed the basis for its target price calculation to the 2027 estimate and raised its target price to 330,000 won.